The New York Governor is set to impose an annual special tax on wealthy individuals owning second homes valued over $5 million, approximately 160 million baht, aiming to address budget shortfalls and deter investors using luxury homes primarily as money storage. This is expected to generate more than 16 billion baht in state revenue annually.
Governor Kathy Hochul announced a new proposal to impose a special "pied-à-terre" tax on wealthy individuals for second homes valued above $5 million (about 160 million baht). This proposal has received support from New York City’s new mayor, Sohraan Mamdani, who embraces democratic socialist ideas.
Governor Hochul stated on the official website, "If you have the money to buy a second home worth over $5 million and leave it vacant most of the year, you certainly have the means to contribute to society like other New Yorkers."
The tax will take the form of an annual surcharge targeting property owners who do not reside in New York, including global elites who treat Manhattan real estate primarily as a place to park money rather than live. This policy resembles those already in place in France, the United Kingdom, and Canada.
This proposal marks a partial victory for Mayor Sohraan Mamdani, who just completed his first 100 days in office after campaigning on a "tax the rich for the poor" platform to fund welfare programs like free buses, universal childcare centers, and state-run grocery stores.
Mayor Mamdani said, "We are one step closer to balancing the budget by taxing ultra-wealthy global elites through our state’s first-ever 'second home' tax law." Meanwhile, New York City faces a serious budget deficit inherited from the previous administration.
The administration cited billionaire Ken Griffin, CEO of Citadel, who set a record by purchasing a luxury condominium overlooking Central Park for $238 million in 2019. Griffin criticized Mamdani’s policies, saying they are not what New Yorkers deserve.
Meanwhile, Republican opponent Bruce Blakeman accused Governor Hochul of breaking her campaign promise not to raise new taxes during the election year. However, Hochul affirmed she only supports the luxury real estate tax and will not approve corporate income tax hikes demanded by socialist groups.
If this law passes the New York State Legislature, it is expected to generate approximately $500 million, or over 16 billion baht, annually for the state, helping to close the city’s current budget deficit crisis.